We use SEO tools and craft a keyword strategy. Then we calculate the total amount of monthly leads/sales and cost-per-lead/sale using the formula on this post.
A smart approach would be to work your way to the top by generating affordable leads in a short amount of time with a small amount of budget by bidding on lower position, higher quality keywords. Then start to scale.
Start new campaigns with a manual bidding strategy until the algorithm has enough data to switch to automatic. Then, see how high you can push the algorithm to automatically raise its goal (i.e. target CPC of $X could be the goal). You must have conversion tracking set up correctly before running any campaigns or else you will be feeding the wrong data into the machine learning algorithms, which will obstruct its ability to get results. You can check this by going to the Conversions report and checking the “Include in Conversions?” column and making sure that only the appropriate conversion actions are included.
Doing this causes the algorithm to not be able to spend the full budget, and ultimately, causes us to fall behind spend and lose valuable time in the learning process, too.
Here are the top 10 things to make sure your website complies with in order to prepare for running ads.
What can we do to reduce our CPC?
What to expect with Competitor Campaigns - You might decide to target the clients’ competitors.